BillSherpa · Emergency & Panic Guides · Updated 2026
Medical bill went to collections — will it destroy my credit score?
Medical debt and credit reporting changed dramatically in 2023. The impact on your credit may be much smaller than you think — and possibly zero. Here's what the rules actually say now.
The major changes to medical debt credit reporting
- Paid medical collections no longer appear on credit reports at all. Once paid or settled, the collection must be removed immediately.
- Medical collections under $500 no longer appear on credit reports. Regardless of payment status.
- The waiting period before reporting was extended to one year. Previously 6 months — now 12, giving you more time to resolve before it affects your credit.
The CFPB is pushing further. The Consumer Financial Protection Bureau has proposed a rule to remove all medical debt from credit reports entirely. As of 2026 this is working through the regulatory process.
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How to check whether medical debt is on your credit report
- Go to annualcreditreport.com — the only federally mandated free credit report site. Get all three reports.
- Look for accounts from collection agencies — medical debt in collections will typically show the collector's name, not the hospital.
- Verify the amounts and dates, especially the date of first delinquency.
- Dispute anything that shouldn't be there — a medical debt under $500, or a paid collection still showing — file a dispute with the bureau directly.
How to get a medical collection removed
- Pay or settle the debt — once paid, it must be removed from all three reports under the 2023 rules
- Dispute inaccurate collections — the bureau has 30 days to verify or remove it
- Wait it out — collection accounts can only remain for 7 years from the date of first delinquency
Get your bill checked free
Upload your bill. BillSherpa scans it against 6 federal regulations and shows you every potential error and estimated savings — completely free.
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You only pay $47 if you want the full report and dispute letter · drops to $27 if savings are under $150
Frequently asked questions
I paid a medical debt years ago but it's still on my report.
Under the 2023 changes, paid medical collections should have been removed. File a dispute with each credit bureau immediately, providing proof of payment. The bureau must investigate and remove it if it verifies as paid.
How long does a medical collection stay on my credit report?
Under federal law (Fair Credit Reporting Act), collection accounts can remain for 7 years from the date of first delinquency. However, paid medical collections are now removed immediately, and unpaid collections under $500 no longer appear at all.